Why MGM Resorts Stock Fell 6% Today
Shares of casino operator MGM Resorts International (NYSE: MGM) fell roughly 6% in early trading on Wednesday. This move, however, needs to be put into a broader context. Although MGM's stock is still down around 45% for the year, it is well off its March nadir, when it was lower by roughly 75%. So while today's decline is notable on an absolute basis, it's not that big in the grand scheme of 2020.
The obvious problem here is COVID-19. The coronavirus effectively shut down MGM Resorts' casino operations when the government closed nonessential businesses and asked citizens to practice social distancing. As the economy has begun to reopen, the company's casinos have been slowly welcoming customers back through their doors. That's the good news and helps explain why the stock is up off its worst levels of the year.
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Source Fool.com
